Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information Skip to question [The following information applies to the questions displayed below.] The comparative financial statements prepared at December 31, 2015, for Prince

Required information Skip to question [The following information applies to the questions displayed below.] The comparative financial statements prepared at December 31, 2015, for Prince Company showed the following summarized data: 2015 2014 Income statement: Sales revenue $ 190,900 * $ 167,900 Cost of goods sold 112,200 101,800 Gross profit 78,700 66,100 Operating expenses and interest expense 56,600 53,600 Pretax income 22,100 12,500 Income tax 6,630 3,750 Net income $ 15,470 $ 8,750 Balance sheet: Cash $ 5,900 $ 6,500 Accounts receivable (net) 15,700 17,500 Inventory 41,900 32,400 Operational assets (net) 46,700 37,300 $ 110,200 $ 93,700 Current liabilities (no interest) $ 15,700 $ 16,700 Long-term liabilities (10% interest) 43,500 43,500 Common stock (par $5) 29,700 29,700 Retained earnings 21,300 3,800 $ 110,200 $ 93,700 *One-third was credit sales. 2. By what amount did working capital change?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Risk Sensitive Investment Management

Authors: Mark H A Davis, Sébastien Lleo

1st Edition

9814578037, 978-9814578035

More Books

Students also viewed these Finance questions